Gold: Panic Selling Imminent?

by JDH on November 4, 2017

I’m a gold bull, and I believe that five years from now gold will be considerably higher than it is now.  However, that doesn’t imply that gold will be higher tomorrow.

My concern is that gold is not exactly swinging for the fences.  Yes, it is up year to date, and that’s good, but the September high is lower than the July high, and that’s not good news.

If new highs are not being made, speculators eventually become jaded, and decide to pull their bids, and that’s what drops us to the bottom.

The problem is that if gold can’t hold at these levels, it’s a clear shot down to just above $1,200.

I’m watching the $1,260 level, not far from the 200 DMA; if that doesn’t hold, then down we go, and that could be the level where the panic selling starts.

So, this week, I sold all of my NUGTs, and played the short side with JDST (which I bought and then quickly sold when I had a small profit; no point in getting greedy).

These week I will thin out my holdings to raise cash.  I will hold all of my long term, exploration plays, but I’ll take some cash off the table with my blue chips, because cash is king.

That’s the plan.

Alterra

In other news, Alterra was bought out.  I’m happy; it’s a great win.  See my initial write up on Alterra here.  Thanks, I’ll take the profit.  I am slowly selling my shares; I’d prefer to get something closer to $8.00, so that’s the current level of my sell orders.

Thanks for reading; more next week.